Buying a Foreclosure or Bank Owned Property isn't as easy as the infomercials indicate. They fail to mention the layers of bureaucratic signatures required when an offer is bought to the lender.
The steps to owning a Foreclosure involved require "Time and Patience". The savings are tremendous when purchased properly. It requires a professional Realtor to be there every step of the way!
Appraisal Issues: Banks require an appraisal of the property, normally these appraisals are higher than they should be. when writing an offer it's important to analyze the Comps in the area. Forget,what the bank wants,make sure you have the closed sales to back up your offer!
Many times, Bank Appraisers seem to raise the price of a home based on "How much is owed. They're not taking anything into consideration except what's on the books. A smart Realtor can see that as well as understanding the "History" of the property. If a home has been in the Banks Inventory for 3-6 months, it's been our opinion the banks are willing to negotiate.
Submitting the Offer: Contrary to what some tell you, it's wise to submit multiple offers on the homes you wish to purchase. Many times, banks will not budge on one home,but will on another. Don't be afraid to counter, if the Bank rejects. In some cases it may take 10-14 days for the bank to accept or reject your counter offer.
Inspections:Many times these properties require cosmetic repairs, others have structural damage,as well as roof and termite problems. Not every home is left in "Mint Condition", an informed buyer is the one who knows the property they want to purchase and doing an inspection is required. Buying a property sight unseen will lead to problems down the road.
Hiring an Attorney represent you: Think you can do this all by yourself,think again! Dealing with the lenders and issues that arise requires a professional to assist you. having an attorney contact a Homeowners Association when a lien is placed on the property yields results, most HOA~s will not forgive the loan,but will accept less.
Back Taxes: Prior to submitting an offer,make sure to take into consideration "Back Taxes" in many cases a you're responsibility will be to satisfy the taxes owed.
Closing Date: We suggest if you allow the lenders ample time to close. We can't tell you how many layers of people are involved to complete the sale of a Foreclosure. Normal closing dates are 45-60 days. Forget the lenders understanding you're needs and requirements, plain and simple they don't care!
We can't emphasize enough that you must have a skilled Realtor to assist you, a Realtor with experience in dealing with a Foreclosure or Bank Owned property will indeed save you time and money in the end!
Scott Daniels
Florida List for Less Realty, Inc.
954-275-0200
http://www.floridalistforlessrealty.com
Source: www.isnare.com
